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China – Galaxy Macau pledges $60m to Macau relief fund

By - 1 September 2017

The devastating effects of Typhoon Hato dominated every aspect of the first half results of Macau operator Galaxy Macau apart from the actual results with revenue up by 12 per cent to $28.5bn.

The operator has pledged a $60m contribution including $30m from the GEG Foundation plus a $30m matching contribution from the Lui family to support the relief efforts of the people of Macau.
Running up until June 30, the August 23 typhoon will obviously only affect the second half. First half adjusted EBITDA came in at $6.5bn, up 37 per cent year-on-year whilst net profit attributable to shareholders was $4.6bn, up 81 per cent year-on-year.

The Group’s total gaming revenue on a management basis1 in 1H 2017 was $26.4bn, up nine per cent year-on year, total mass table games revenue was $11.4bn, up 15 per cent year-on-year and total VIP revenue was $13.9bn, up five per cent year-on-year. Total electronic gaming revenue was $1.1bn, up 12 per cent year-on year.

Dr. Lui Che Woo said: “After Typhoon Hato hit Macau, GEG has moved to improve relevant benefits and arrangements for its employees. GEG has established a typhoon financial assistance foundation for employees whose home contents and cars are damaged. We greatly appreciate every single person who has contributed their time and effort to help during such a difficult time. However, I would like to express my sincere condolences to the family and friends of the people who perished and the citizens who sustained injury as a result of the devastating destruction brought by the two typhoons plus so many who have suffered. Macau has endured the storm and is now focused on recovering and rebuilding with the helping hands of many, including GEG, which is a testament to the will, strength and character of the Macau people. The community is rallying around each other and together we will all move forward with a very bright future.

“Our teams at Galaxy Macau, StarWorld and Broadway are contributing to the relief efforts in a variety of ways ranging from substantial donations of goods and services including food, water and trucks for debris removal to a number of team members volunteering to help Macau in areas of need from clean up efforts to delivering food and water to the elderly,” he added. “I am pleased to announce a $60m contribution including $30m from the GEG Foundation plus a $30m matching contribution from the Lui family to support the relief efforts of the people of Macau as well as our GEG team members during this challenging and stressful period including materials and resources of K Wah Construction Materials. We look forward to working with the Macau government to determine the most effective way to deploy our contribution during this critically important period.”

Little commentary was given on the results. Galaxy Macau’s revenue for 1H 2017 was $20.1bn, up eight per cent year-on-year. Adjusted EBITDA was $5.1bn, up 29 per cent year-on-year. Galaxy Macau experienced bad luck in its gaming operations which decreased its Adjusted EBITDA by approximately $30m in 1H 2017.

StarWorld Macau’s revenue for 1H 2017 was $6.7bn, up 20 per cent year-on-year. Adjusted EBITDA was $1.4bn, up 45 per cent year-on-year. StarWorld Macau experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $60m in 1H 2017. Normalized 1H 2017 Adjusted EBITDA was $1.4bn, up 30 per cent year-on-year.

Broadway Macau’s revenue in the first half was $262m down from $350m. However Galaxy stressed that Broadway Macau is a unique family friendly, street entertainment and food resort supported by Macau SMEs, and does not have a VIP gaming component. It experienced bad luck in its gaming operations which decreased its Adjusted EBITDA by approximately $6m in 1H 2017. Normalized 1H 2017 Adjusted EBITDA was $13m, up 63 per cent year-on-year.

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